Savings account notice period

smnberryman

Hi

I have a Reward Savings account with the Post Office.

No notice withdrawals are "subject to the loss of 30 days grossGross rates do not take into account deductions of income tax. interest on the amount withdrawn (subject to a minimum of £1)"

I understand this just means I lose the last 30 days interest on whatever I withdraw?

So if I withdraw the balance I lose the whole of last 30 days interest, and if I withdraw half the balance I lose 50% of the last 30 days interest?

Thanks

Eco_Miser

That's how I read it EXCEPT the interest penalty is the gross interest, so 25% more than a basic rate taxpayer would actually receive. (37.5 days net interest). You still pay the tax on the interest you are penalised.